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Ordinance 2010-348
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Ordinance 2010-348
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Last modified
9/30/2010 10:48:12 AM
Creation date
9/30/2010 10:48:02 AM
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CityClerk-Ordinances
Ordinance Number
2010-348
Date (mm/dd/yyyy)
07/27/2010
Description
$3.5 Million Loan from BB&T/Stormwater Utility Revenue Bond, Series 2010
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<br />Preview <br /> <br />Page 2 of2 <br /> <br />TALLY OF BIDS: <br />Staff had sent out letter of interests in mid-April to the following financial institutions: <br /> <br />. Bank of America <br /> <br />. SunTrust Bank <br /> <br />. Bank Atlantic <br /> <br />. BB & T <br /> <br />. City National Bank <br /> <br />Bank of America did not respond to the letter of interest. <br /> <br />SunTrust and City National Bank had attempted to put a proposal together, but were not <br />able to deliver a proposal due to corporate decisions, <br /> <br />The two remaining financial institutions submitted the following proposals for the loan: <br /> <br />. Bank Atlantic-l 0 year $3.5 million term loan at an annual interest rate of 5.75% and an <br />option for a 1 year $1 million line of credit at an annual interest rate of 4,5%. <br /> <br />. BB&T -15 year up to $4,5 million term loan at annual interest rate of 4.02% and a 20 <br />year up to $4,5 million term loan at an annual interest rate of 4.76%. <br /> <br />STAFF's RECOMMENDATION: <br />The term of the Bank Atlantic loan exceeds the City's ability to have enough cash flow to <br />comply with the payment schedule. BB&T offers the best proposal with a 15 year term <br />$3.5 million loan at 4.02%, This loan amount will accomplish reimbursement of <br />the Capital Improvement fund and additional capital projects that Stormwater Fund can <br />address. The loan is structured with quarterly principal and interest payments and is <br />included in the proposed FY 20 I 0/20 11 budget. <br /> <br />FUNDING SOURCE: <br /> <br />Storm water Fund <br /> <br />A TT ACHMENTS: <br />. Ordinance <br />. Form of2010 <br />. Public Hearing Notice <br /> <br />http://sibagenda,sibfl,net/agendalPreview.aspx?ItemID=313&MeetingID=O&MeetingDate,., 7/20/2010 <br />
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